Investment approach

 

First Fund's Investment Approach

Pre-investment

Prior to making any investment, First Fund's private equity business assesses the sustainability of each company, documenting any material findings in our investment papers. First Fund has developed a comprehensive online screening and information tool, and an early-stage ESG red flag checklist.

Due Diligence Process

During the due diligence process, First Fund's private equity teams review potential investments for ESG related risks and opportunities. Any final investment recommendation requires an ESG review to be completed that identifies any issues highlighted in due diligence including those related to environmental, climate change, labour relations, human rights, community responsibilities and anti-bribery and corruption. First Fund has developed a comprehensive online ESG screening and information tool, and an early-stage red flag checklist to facilitate this assessment process. Furthermore, each deal team will typically work with a range of parties including First Fund's Operations team, First Fund's Legal and Compliance teams, and specialist third-party ESG consultants.

Monitoring and Partnering with Portfolio Companies

Immediately after the acquisition of a portfolio company, the private equity teams work to ensure it operates from a strong sustainable platform to help maximise the success of the investment. First Fund has identified a set of standards that all portfolio companies are expected to consistently meet. These standards range from reporting and financial controls to environmental matters, health and safety and cyber security. First Fund has adopted a post-closing review which must be presented and reviewed by the First Fund Portfolio Committee within 4-6 months of the investment being completed.From the early stages of investment, portfolio companies are supported in improving their ESG performance, identifying and responding to opportunities for further improvement on an ongoing basis.This includes confirmation that First Fund's deal team has completed the First Fund Anti Bribery and Corruption Sanctions and Conflicts Screening Assessment Report in conjunction with First Fund Compliance and the Post-Closing Review addresses a number of other topics including Governance and Board oversight; Environmental Policy; Environmental Activities; Climate change impact; Health & Safety Policies; Employee Engagement; Responsible Procurement; a follow up on any ESG issues identified in due diligence and whether the company actively invests within its community.First Fund's private equity business conducts a monthly portfolio company review, which includes a focus on all ESG-related topics for portfolio companies. First Fund has also conducted a number of online ESG surveys across its portfolio to better understand the approach of portfolio companies to the management of ESG issues.From the early stages of investment, portfolio companies are supported in improving their ESG performance, identifying and responding to opportunities for further improvement on an ongoing basis.  First Fund works with portfolio companies to enhance their engagement and best practice on diverse topics including anti-bribery and corruption, sustainable sourcing and worker safety. 

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